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Question 2 Not complete Marked out of 1 . 6 7 Flag question Recording and Reporting Compensated Absences Ulta Inc. allows each employee to earn
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Recording and Reporting Compensated Absences
Ulta Inc. allows each employee to earn paid vacation days each year with full pay. Unused vacation time can be carried over to the next year. If not taken during the next year, unused vacation time is lost. By the end of Year all but of the employees had taken their earned vacation time. The three employees carried over to Year a total of vacation days, which represented Year salary of $ During Year all of these three used their Year vacation carryover; none of them had received a pay rate change from Year until the time they used their carryover. Total cash wages paid: Year $; Year $ There was no carryover of vacation time earned in Year
Required
a Provide the entry for Ulta Inc. to accrue compensated absences on December of Year and make payment of vacation days in Year Disregard payroll taxes.
b Compute the total amount of salaries expense for Year and for Year
c How would the vacation time carried over from Year affect the December of Year balance sheet?
tableDateAccount Name,DrCra Dec. Year To record compensated balances.,,a Year To record payment of vacation days.,,
b Salaries expense for Year $
Salaries expense for Year $
Balance Sheet, Dec.
Year
c Current liabilities
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